Binance has maintained its undisputed leader position among cryptocurrency exchanges for years. Moreover, it captured more than 50% of the total market share in the process. However, this is changing following the regulatory pressures it faces.
Binance lost its dominance in market share!
cryptokoin.comAs you’ve been following from , 2023 has definitely been a mixed year for the crypto market. On the one hand, we have witnessed a significant recovery period for many cryptocurrencies. Moreover, we got off to a fast start to the new year with the SEC approving a spot Bitcoin exchange-traded fund. As a result, Binance exchange’s market dominance was significantly challenged multiple times throughout the year. It experienced sharp declines twice. First, we saw a loss of momentum after the SEC announced its lawsuit. It then collapsed after CEO Changpeng Zhao resigned as part of a settlement with the SEC.
For the world’s largest cryptocurrency exchange, the setbacks weren’t just due to regulatory pressure. The first blow to its market share, which fluctuated between 52% and 60% according to a Jan. 17 report from TokenInsight, came in March when the platform’s Zero-Fee Bitcoin trading promotion ended. Overall, Binance started 2023 controlling 54.2% of the total market share. However, he finished the year with 48.7%. The low point for the stock market came on November 24, shortly after Zhao announced his resignation. In fact, it dropped as low as 32% for a short period of time.
The big winners and losers of 2023
While Binance has fallen slightly from its dominant position, several other exchanges have gained market share. Among these, the two biggest winners were OKX, which rose from 11.8% to 16.1%, and Bybit, which rose 2.2% from 10.1% to 12.3%. Meanwhile, Binance, OKX and Bybit maintained their superiority in spot and derivative transactions.
Some other well-known cryptocurrency exchanges, which are also targeted by US regulators in 2023, also fell. Thus, Kraken fell from 0.8% to 0.6%, and Coinbase fell from 2.4% to 1.8%.
This year is likely to bring some changes to the crypto market as well. Not only are there widespread hopes that 2024 will deliver a bull market for cryptocurrencies, but multiple platforms are taking active steps to solidify their positions. For example, OKX received a VASP license from Dubai as recently as January 16. Coinbase, the largest U.S.-based public exchange, is stepping up efforts to make its home turf more favorable with a massive lobbying effort in Washington.
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